Commenting on the recent Daft.ie Q4 House Price Report, IPAV, the Institute of Professional Auctioneers & Valuers, said the results broadly concur with those reported by IPAV auctioneers which indicate that prices have picked up again in the latter quarter of 2023.
“Availability of homes, and at affordable prices for those on average wages, has been and remains the main issue stalking the market for the last decade.
"For the average wage earner, there has been 'growing impediments' to home ownership, the latest being overly aggressive interest rate hikes by the ECB, 10 over a 14-month period from Aug 2022 to Oct 2023.
“This means activity in the housing market is largely confined to those on higher than average incomes and those who are in the fortunate position to be able to buy homes without needing a mortgage, or perhaps a small supplementary mortgage. This latter group could be as high as 40%," Pat Davitt, IPAV’s Chief Executive, said.
Mr Davitt said, were it not for State schemes, such as the Help-to-Buy and the First Home and other schemes this equation would be even more dramatic.
“In 2024 the Government needs to look urgently at addressing deep impediments that have changed little over the last decade, including, the high State take on home building; planning policy chaos and policy makers and influencers antipathy towards, and fear of, being seen to aid SME builders and developers who have traditionally been the mainstay of the Irish home building sector," he added.
He said the latter got a raw deal from NAMA and haven’t recovered, with State schemes set up to help them, while good in theory were ineffective in operation, largely because of excessive and unviable interest rates at a time when the ECB rate was zero.
Mr Davitt noted that Canada is adapting an old system of pre-approved designs so homes can be built quickly and economically to tackle its housing affordability crisis.
“Social cohesion into the future is a real concern arising from lack of access to housing. We need urgent and practical measures, and we certainly do not need to see the issue treated as a political football in the run-in to elections,” he concluded.
